IB-DB2: COVID & Car Industry Link: https://www.wsj.com/articles/the-coronavirus-redraws-the-car-markets-world-map XXXXXXXXXX Your question: How will the global auto market look in ten years? How big...

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IB-DB2: COVID & Car Industry   Link: https://www.wsj.com/articles/the-coronavirus-redraws-the-car-markets-world-map-11594141880   Your question: How will the global auto market look in ten years? How big will Tesla be compared to GM, Ford, and Fiat Chrysler, for instance? Given the weight given in your grade to discussion boards you must be extra careful with your expression.  This is not texting or informal chat.  It is like writing a memo at work. Always express yourself in complete sentences.  This is an opportunity to hone professional writing (which basically means, very clear) and earn a good grade by practicing it.  Write your posting on a Word document before you post, use spelling and grammar software and, if needed, have someone else read to make sure that it makes sense.  The dark side of being well informed about something is that we assume that others are at the same level, for which we tend not to be clear enough when we explain. Since we are practicing professional writing, assume that you are talking to someone who knows nothing about what you are talking about.  Also remember that the best way to learn something is to teach it or explain it to others.  As you know, it is best to produce your postings as soon as possible.  Maybe tonight.  Make sure that you apply grammar and spelling software before you post, though. If you post at the last minute without reviewing your posting it will show.  Each discussion board is 25 points. Postings submitted past Friday will not be graded or included in your grade. You must make a minimum of 3 posts. 1- answer the question with a minimum of 25 words. 2- reply to someone else's post with and insightful question. 3- reply to someone else's post with an insightful comment that demonstrates your understanding of the course concepts. "I agree" is not an insightful comment. 4-Do not cut and paste.  See checklist. Your score is also based on the 4 criteria: Quality, Quantity, Relevance and Manner. Microsoft Word - Checklist.docx Checklist We are using this opportunity for you to practice professional writing. This means producing grammatically correct and complete sentences in a coherent order. The procedure to make sure that you achieve that is simple. Before you post, use spelling and grammar software and (if necessary) ask someone to proofread the posting to make sure that it makes sense. Discussion boards (DB) cannot be made up because they are interactive. You will lose 25 points for each DB that you miss. Don't hurt your grade. Here is the checklist that I will use for feedback. If you see —for example— a C in the comments section of the DB, that means that you did not follow C in the list below. A- The Discussion Boards are for applying what you are learning to analyze a recent situation, not for opinions. Avoid stating: “in my opinion” or “in my view…” Just state facts and, when possible, support them with figures. B- Spelling or grammar mistakes: use spelling and grammar software before you post. C- Avoid expressions like “a lot” or “huge.” Use figures instead. D- Sources: 1-Paraphrase or quote. Credit your sources using the APA style: https://www.wikihow.com/Write-an-APA-Style-References-Page 2-Do not cut and paste from readings. That is plagiarism, which is illegal. 3-List at least three references, including the assigned article. 4- Indicate the source at the end of the sentence where you apply it like this: (McLain, 2020) 5-Enter the title References before your list at the end of your main posting. E- Use the same font and size in all postings lest your work looks choppy. F- Don’t state that you agree or disagree with a student unless you add a sentence explaining why. Yousuf Hayat English Edition · · · Print Edition Video Podcasts Latest Headlines · Home · World · U.S. · Politics · Economy · Business · Tech · Markets · Opinion · Life & Arts · Real Estate · WSJ. Magazine Top of Form Bottom of Form The Future of Transportation Talking roads, flying ferries and 'auto-land' aircraft–The Future of Everything is back with a take on transportation. EXPLORE NOW BUSINESS The Coronavirus Redraws the Car Market’s World Map China surges out of its slump as the U.S. struggles; Europe languishes at the back of the recovery queue A BMW 8 Series luxury vehicle during an auto show in Shenzhen, China, last month. CHEN WEN/CHINA NEWS SERVICE/GETTY IMAGES SHARE · FACEBOOK · TWITTER · EMAIL · PERMALINK By  William Boston July 7, 2020 1:11 pm ET · SAVE · PRINT · TEXT BERLIN—The global auto market is splitting three ways, complicating efforts by the industry’s main players to recover from their deepest crisis in years. While sales in post-lockdown China are showing signs of recovery, they are continuing to fall in the U.S., according to company and industry data released in recent weeks. The data also show that Europe is becoming the world’s weakest-performing auto market. This lopsided recovery is putting extra stress on an industry that was already struggling with softening demand and soaring technology costs before the coronavirus pandemic hit. Shares of General Motors Co., Ford Motor Co. and Fiat Chrysler Automobiles N.V. are each down roughly 30% in 2020, and their combined market value now represents just a third of Tesla Inc. While persistently weak demand, particularly in Europe, is pushing some manufacturers to join forces, the recovery in China is helping those car makers with substantial business there, such as Tesla, shares of which have tripled this year. “Those manufacturers relatively more exposed to China will be in a better position—or not as bad a position—than those where their footprint is skewed away from China,” said Jonathon Poskitt, an analyst at forecasting group LMC Automotive. Fresh sales data from German luxury-car maker BMW AG BMW -2.53% on Tuesday illustrate the industry’s new world map. In China, BMW sold 212,617 cars in the second quarter, up 17% from a year earlier. In the same period, sales fell 40% in the U.S. and 46% in Europe. Mr. Poskitt said LMC expects China’s new-car market to decline 11% to 22.8 million vehicles this year, compared with the U.S. falling 22% to 13.3 million and Europe declining 24% to 15.7 million. Stalled RecoveryAmid the Covid-19 crisis, new-car sales inglobal auto markets are out of sync.New car salesSources: China Association of AutomobileManufacturers, Ward's Auto, European AutomobileManufacturers' AssociationNote: June values are estimates. .millionChinaU.S.EuropeJan. 2020Feb.MarchAprilMayJune012 Global DivideBMW new-car sales illustrate the new auto-industry split.New car sales, second-quarter 2020Source: the companyNote: combines BMW and Mini brands. BMWtotalChinaU.S.Europe0200,000400,000600,000 This is a different picture from just a year ago. Back then, global manufacturers with large China businesses such as Volkswagen AG and General Motors were struggling with a slowdown in demand in this market at the same time they faced rising investment costs linked to the transition to electric vehicles. Now, after being hit first by the pandemic and the associated slump, China is also first to emerge on the other side. By April, China was nearly back to pre-Covid-19 sales levels and posted year-over-year growth of 6% in May. The China Association of Automobile Manufacturers said last week on its WeChat page that preliminary figures showed June new-car sales had risen 6.3% to 2.28 million vehicles. In the U.S., auto makers reported sharp drops in second-quarter sales, despite discounts and cheap financing. General Motors posted a 34% drop in sales in the period, but said demand had begun to pick up in May and June. Toyota Motor Corp. ’s sales in the U.S. fell by about one-third, and Fiat Chrysler reported a 39% decline in U.S. sales. Altogether, Ward’s Auto, an automotive-research group, has forecast that roughly 1.1 million light vehicles were sold in the U.S. last month, a decline of 27% from a year earlier. In Europe, new-car sales were down 57% in May, an improvement on the 78% drop in April, when major markets such as the U.K., Spain and Italy barely sold any new cars. Still, May’s weak performance, which was worse than the U.S., suggests to some observers that Europe will be the last to emerge from the crisis even though it began reopening its economy before the U.S. did. Related Video What PMI Numbers Won’t Tell You YOU MAY ALSO LIKE UP NEXT 0:00 / 5:14 0:47 What PMI Numbers Won’t Tell You In recent years, purchasing managers indexes have become important indicators of where the global economy might be heading. But in the current slowdown, where small businesses were some of the hardest hit, PMI numbers may not be telling the full story. WSJ explains. Photo: Getty Images The European Automobile Manufacturers’ Association recently slashed its forecast for 2020, saying European new-car sales would fall 25% to fewer than 10 million vehicles. Analysts have said it could take Europe several years to get back to pre-Covid-19 volumes of new-car sales. This slowdown in sales means any manufacturer dependent on profit from Europe could have a harder time recovering as rivals with strong businesses in China or the U.S. pull ahead. Economists expect Europe to get a boost from government efforts to spur sales, including incentive programs in Germany, France and other countries as well as Berlin’s decision to lower value-added taxes for the next six months. But that might not be enough, given Europe’s aging population, widespread car ownership and historic reluctance to make big-ticket purchases in uncertain times. A VW ID.3 under assembly in Zwickau, Germany. PHOTO: HENDRIK SCHMIDT/DPA/ZUMA PRESS “Factories and dealers reopened,” said Stefano Aversa, vice chairman of Alix Partners. “But the consumer isn’t buying.” With analysts estimating that the industry now has at least 30% overcapacity, it might be hard for companies to generate the profits needed to repay the more than $1 trillion in debt they amassed to stave off insolvency early in the pandemic. Calum MacRae, an automotive analyst at research firm GlobalData, said recent sales data suggest that April was likely the trough in new-car sales, but the deeper damage to auto makers isn’t yet visible. “The coming months will reveal the extent of economic scarring,” Mr. MacRae said. With unsold cars piling up on lots, Volkswagen said last week that it was scrapping plans to build a new factory in Turkey. And Mercedes-Benz, owned by Daimler AG , said it was putting its Hambach factory, in France’s Lorraine region, up for sale. RELATED · During Covid-19 Pandemic, the Used-Car Lot Is Hot (July 3) · Car Sales Fell in the Second Quarter, Despite Deals and Covid-19 Stimulus (July 1) · The Pandemic Has Pushed Car Buying Online
Answered Same DayJul 30, 2021

Answer To: IB-DB2: COVID & Car Industry...

Swati answered on Jul 30 2021
158 Votes
1. How will the global auto market look in ten years? How big will Tesla be compared to GM, Ford, and Fiat Chrysler, for instance?
Global
auto market was expected to grow majorly in the sectors of self driven cars, utility technology and electric car technology along with its growth in the current sectors. But, the covid-19 pandemic has impacted the global auto market severely wherein the share value have declined roughly 30% in 2020( Boston W., 2020). There was already a fall in auto sector and pandemic added it to (Naughton N, 2020).
In next ten years, there seems chances of growth in auto sector wherein slowly and gradually the market has started picking up back already in china, followed by Europe and other countries will also eventually start picking the pace back. The pandemic is not a condition which is never ending. There may be some specific required changes with respect to technology and marketing strategies in upcoming years but surely the global auto market will attain back its sales and growth rate (N. A. Z., , M. F. M. Y., & Mohd Farid Shamsudin, 2020).
In comparison to GM, Ford and Fiat Chrysler, Tesla will tend to grow bigger soon as if we analyze the data in current scenario, combined share market value of these companies are one third of Tesla alone depicted the strength Tesla is still showing in pandemic condition( Lim, K., Kim, J....
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